On Wednesday, the Union Cabinet announced the extension of the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) price support scheme for agriculture until 2025-26. This initiative aims to provide farmers with better prices and manage price volatility for essential commodities, with an outlay of ₹35,000 crore.
Overview of PM-AASHA
The PM-AASHA scheme merges the following:
- Price Support Scheme (PSS)
- Price Stabilization Fund (PSF)
Components of PM-AASHA
- Price Deficit Payment Scheme (PDPS)
- Market Intervention Scheme (MIS)
These components are designed to ensure that farmers receive Minimum Support Prices (MSP) for their produce.
Key Provisions
- Procurement Plans: The government plans to procure 25% of the national production for key crops, including pulses, oilseeds, and copra, starting from the 2024-25 season.
- 100% Procurement Rate: Crops such as tur, urad, and masur will have a procurement rate set at 100%.
- Digital Transactions: Purchases will be conducted through digital platforms like eSamridhi and eSamyukti, managed by state agencies.
Strategic Measures
The extension of the PSF will help:
- Build strategic buffer stocks of pulses and onions
- Address price swings and curb hoarding
Expansion of PDPS
The scope of PDPS will be expanded to cover 40% of state oilseed production, providing more farmers protection against price drops.
Support for Key Crops
The government will absorb transport and storage costs for crops such as:
- Tomatoes
- Onions
- Potatoes
These measures aim to control inflation and ensure stable prices across the country.
Subsidy on P&K Fertilizers
The Cabinet also approved a ₹24,474.53-crore subsidy for phosphatic and potassic (P&K) fertilizers for the rabi season (October 2024 to March 2025).
Subsidy Details
- The subsidy will be provided to fertilizer companies based on approved rates for Nitrogen (N), Phosphorus (P), and Potassium (K).
- The government is making available 28 grades of P&K fertilizers at subsidized prices.
- This subsidy is governed by the Nutrient-Based Subsidy (NBS) scheme effective from April 1, 2010.
Impact of Rising Fertilizer Prices
Agriculture Minister Shivraj Singh Chouhan stated that this subsidy will relieve farmers facing increasing costs due to rising global fertilizer prices. The government is also promoting the use of organic fertilizers to reduce dependency on chemical options.
Export Policy Considerations
The government is considering lifting the ban on the export of certain varieties of non-basmati rice. The ban on non-basmati white rice, implemented on July 20, 2023, aimed to boost domestic supply.
Multiple Choice Questions (MCQs):
- What is the primary aim of the PM-AASHA scheme?
- A) To promote organic farming
- B) To provide price support to farmers
- C) To increase export of crops
- D) To subsidize fertilizer prices
Answer: B) To provide price support to farmers
- What is the total outlay for the extended PM-AASHA scheme?
- A) ₹25,000 crore
- B) ₹30,000 crore
- C) ₹35,000 crore
- D) ₹40,000 crore
Answer: C) ₹35,000 crore
- Which crops will have a 100% procurement rate under the PSS?
- A) Pulses
- B) Tur, urad, and masur
- C) Oilseeds
- D) Wheat
Answer: B) Tur, urad, and masur
- How much of state oilseed production will the expanded PDPS cover?
- A) 25%
- B) 30%
- C) 35%
- D) 40%
Answer: D) 40%
- What is the amount of subsidy approved for P&K fertilizers for the rabi season?
- A) ₹20,000 crore
- B) ₹22,474.53 crore
- C) ₹24,474.53 crore
- D) ₹26,000 crore
Answer: C) ₹24,474.53 crore